Healthy Government-Owned Companies First: The Foundation for Sustainable Dividends

𝘍𝘳𝘢𝘯𝘬𝘭𝘺𝘯 𝘙𝘪𝘤𝘩𝘢𝘳𝘥𝘴 𝘓𝘓.𝘔. 𝘪𝘴 𝘢 𝘤𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘦 𝘨𝘰𝘷𝘦𝘳𝘯𝘢𝘯𝘤𝘦 𝘭𝘦𝘨𝘢𝘭 𝘢𝘥𝘷𝘪𝘴𝘰𝘳, 𝘧𝘰𝘳𝘮𝘦𝘳 𝘓𝘪𝘦𝘶𝘵𝘦𝘯𝘢𝘯𝘵 𝘎𝘰𝘷𝘦𝘳𝘯𝘰𝘳 𝘰𝘧 𝘚𝘪𝘯𝘵 𝘔𝘢𝘢𝘳𝘵𝘦𝘯, 𝘢𝘯𝘥 𝘩𝘢𝘴 𝘢𝘥𝘷𝘪𝘴𝘦𝘥 𝘨𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵𝘴 𝘢𝘯𝘥 𝘨𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵-𝘰𝘸𝘯𝘦𝘥 𝘦𝘯𝘵𝘪𝘵𝘪𝘦𝘴 𝘵𝘩𝘳𝘰𝘶𝘨𝘩𝘰𝘶𝘵 𝘵𝘩𝘦 𝘋𝘶𝘵𝘤𝘩 𝘊𝘢𝘳𝘪𝘣𝘣𝘦𝘢𝘯 𝘰𝘯 𝘤𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘦 𝘨𝘰𝘷𝘦𝘳𝘯𝘢𝘯𝘤𝘦, 𝘱𝘶𝘣𝘭𝘪𝘤 𝘢𝘥𝘮𝘪𝘯𝘪𝘴𝘵𝘳𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘨𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵-𝘰𝘸𝘯𝘦𝘥 𝘦𝘯𝘵𝘦𝘳𝘱𝘳𝘪𝘴𝘦 𝘳𝘦𝘧𝘰𝘳𝘮. 𝘛𝘩𝘦 𝘷𝘪𝘦𝘸𝘴 𝘦𝘹𝘱𝘳𝘦𝘴𝘴𝘦𝘥 𝘪𝘯 𝘵𝘩𝘪𝘴 𝘢𝘳𝘵𝘪𝘤𝘭𝘦 𝘢𝘳𝘦 𝘩𝘪𝘴 𝘰𝘸𝘯.

An article published in 𝘛𝘩𝘦 𝘋𝘢𝘪𝘭𝘺 𝘏𝘦𝘳𝘢𝘭𝘥 of July 13, 2026, revealed that the Government of Curaçao is set to receive more than Cg. 28 million in dividends from its wholly government-owned fuel company, Curoil.

In my recently published 𝘛𝘳𝘪𝘣𝘶𝘯𝘦 opinion article, “Beyond the Charter: Building Stronger Government-Owned Companies Through Good Governance,” I argued that the key to improving the performance of Sint Maarten’s government-owned companies lies not merely in amending their Articles of Incorporation, but in adopting a comprehensive Government Ownership and Shareholder Policy supported by sound corporate governance principles. The recent developments in Curaçao provide a practical example of why such a policy is needed and how it can benefit both the Government of Sint Maarten and the people it serves.

Many people may see the Cg. 28 million in dividends simply as Government taking money from one of its companies. In reality, it demonstrates something much more important: before a Government can responsibly receive dividends, it must first ensure that its companies are financially healthy.

That is the lesson Sint Maarten should take from Curaçao.

Financial Health Comes First

Government-owned companies exist to provide essential public services while operating as financially sound businesses.

Before a company can distribute profits to its shareholder, it must first be able to:

• Meet all of its financial obligations;

• Invest in maintaining and improving its infrastructure;

• Prepare for emergencies and future challenges; and

• Continue providing reliable services to the community.

A company that is financially weak should not be expected to pay substantial dividends. Its first priority should be strengthening its financial position.

Only healthy companies can consistently contribute to the country’s development.

The Role of a Government Ownership and Shareholder Policy

This is where a Government Ownership and Shareholder Policy becomes essential.

Such a policy establishes clear expectations between Government and its companies. It defines not only dividend expectations but also the financial standards each company should achieve before dividends are considered.

The policy should require companies to maintain adequate profitability, liquidity, solvency and investment capacity before any profits are distributed.

In other words, financial sustainability must come before dividend distribution.

Government Is More Than a Shareholder

Government is not simply an owner seeking financial returns.

It is also responsible for protecting the long-term interests of the people.

That means ensuring that companies such as GEBE, WINAIR, Princess Juliana International Airport Operating Company, Port St. Maarten Group, TelEm Group, and Postal Services St. Maarten (PSS) remain financially strong, well-managed and capable of providing quality services for many years to come.

Receiving dividends should therefore never come at the expense of the company’s future.

Independent Advice Strengthens Good Governance

One reason Curaçao’s system works well is that dividend decisions are supported by an independent corporate governance advisory body, SBTNO.

Before Government decides on dividends, experts assess whether the company remains financially healthy and whether the proposed dividend is responsible.

Sint Maarten should establish a similar independent advisory body to provide objective and professional advice on shareholder decisions, including dividend policy, major investments, board appointments and amendments to the Articles of Incorporation.

Strong Companies Create Strong Communities

When government-owned companies are financially healthy, everyone benefits.

The companies can invest in better infrastructure, modern technology and improved customer service.

Employees enjoy greater job security.

Investors and lenders have greater confidence.

Government eventually receives sustainable dividends.

Most importantly, the people of Sint Maarten benefit from stronger public services.

Trying to maximize dividends from financially weak companies may provide a short-term gain, but it often leads to long-term problems, including deferred maintenance, underinvestment and declining service quality.

A Better Way Forward

Sint Maarten has an excellent opportunity to modernize the governance of its government-owned companies.

The first step should not be asking:

“How much dividend can Government receive?”

The first question should instead be:

“What must we do to make our government-owned companies financially healthy, sustainable and resilient?”

The answer lies in adopting a comprehensive Government Ownership and Shareholder Policy, supported by an independent corporate governance advisory body similar to Curaçao’s SBTNO.

Once Government clearly defines its ownership objectives, financial expectations, investment priorities and governance standards, our government-owned companies will be better positioned to grow, invest and create lasting value.

Only then should dividends become part of the discussion.

Looking Ahead

The real lesson from Curaçao is not the size of the dividend cheque.

It is that healthy companies come first.

A comprehensive Government Ownership and Shareholder Policy should therefore be established sooner rather than later. Its primary objective should be to build financially strong, professionally governed, and sustainable government-owned companies that deliver high-quality public services while creating long-term value for the people of Sint Maarten. Once this strong financial and governance foundation has been established, Government can responsibly exercise its rights as shareholder, including the receipt of sustainable dividends, without compromising the companies’ future growth, investment capacity or resilience.

When that foundation is in place, dividends will no longer be the objective; they will be the natural outcome of sound corporate governance, prudent financial management and sustained commercial success. In this way, government-owned companies will not only continue to fulfill their public mandate but will also generate lasting value for the country and its people.

This article is therefore a continuation of the discussion initiated in my recent Tribune publication, “Beyond the Charter: Building Stronger Government-Owned Companies Through Good Governance.” Good governance is not an end in itself; it is the means by which government-owned companies become financially strong, professionally managed and capable of creating sustainable value. Only then can Government responsibly exercise its rights as shareholder, including receiving dividends that ultimately benefit the people of Sint Maarten.

That is the model Sint Maarten should strive to achieve; one in which strong governance creates strong companies, and strong companies create sustainable returns for society.

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